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Tesco reopens applications for current account guaranteeing 3% interest until 2019

Written by: Paloma Kubiak
Tesco Bank has confirmed it will reopen applications today for its current account which guarantees 3% interest for two years, but the account now comes with some minimum requirements.

Applications will reopen from 12.30pm today, but the supermarket has made some big changes.

Here’s what you need to know:

  • The 3% AER variable interest on balances up to £3,000 is still guaranteed for two years (1 April 2019)
  • You now need to pay in a minimum of £750 per statement month
  • You must set up three direct debits (excluding direct debits to a Tesco Bank savings account)
  • There is no change for existing customers who have already opened the Tesco Bank current account
  • Customers can still open a maximum of two Tesco Bank current accounts
  • You can apply for the Tesco Bank current account here

In February, Tesco Bank went against the grain by announcing a new current account offering 3% interest until 1 April 2019 on balances up to £3,000, meaning over the course of a year, customers with one account could net £88.

But with the attractive rate, coupled with no minimum direct debit, standing orders or monthly pay in requirements, Tesco Bank was met with ‘unprecedented demand’.

As a result, less than two weeks later, it paused applications after receiving tens of thousands of applications each day.

David McCreadie, managing director of Tesco Bank, said: “I am pleased to reopen applications for our unique current account guarantee designed to provide peace of mind to our existing customers by offering a guaranteed credit interest rate, allowing them to make a return on their hard earned money. Given the unprecedented response to the initial offer we made in February, there are a number of conditions new customers must meet to qualify for the credit interest benefit of this current account offer.

“The current account also rewards customers for their loyalty by giving them a bigger thank you with even more Clubcard points when shopping in Tesco. This is Tesco Bank’s way to give another help to our customers in their day-to-day banking.”

The Tesco Bank debit card doubles up as a clubcard so when used to spend in store at Tesco, customers will receive one clubcard point per £1 spent, rather than the usual one point per £4. For spends outside of Tesco, customers receive one point per £8.

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